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Cathie Wood’s ARK Invest has been offloading its Coinbase (Nasdaq: COIN) shares recently, capitalizing on the crypto exchange’s eye-popping 2023 gain of nearly 400%. The investing firm also bought over 105,000 Tesla shares this year, likely hoping that the auto giant will expand its market share once again this year.
Coinbase Up 390% in 2023
Driven by a resurgence in the crypto market, Coinbase registered a stellar performance in 2023, with its stock soaring more than 390%.Not only the cryptocurrency exchange’s shares have outperformed Bitcoin (BTC), but it is also among the best-performing stocks in the entire US market. Its year-to-date surge in 2023 S&P 500’s top performer, Nvidia, which gained more than 240% amid the AI boom. The primary driver of Coinbase’s ascent was a significant rebound in cryptocurrencies from the 2022 downturn, which took related equities into the red. In a year highlighted by hedge fund collapses and the FTX implosion, Bitcoin fell more than 65%, while Coinbase’s stock lost around 86% during the same period. Additionally, the exchange’s reputation, regulatory compliance, and record as a custodian have contributed to its 2023 rise, allowing the company to maintain transaction fees above those of its peers. Cathie Wood was among the most active investors in Coinbase’s stock through her ARK funds over the past year. As the stock witnessed a remarkable surge, Wood’s investment management firm strategically started divesting its COIN holdings, reaping substantial profits.The latest sale came on January 3, when ARK Innovation ETF sold over 145,000 of the crypto exchange’s shares.
ARK Boosts TSLA Stake Despite Analysts’ Concerns
While trimming exposure to Coinbase, Wood’s funds began bolstering their stake in Tesla (Nasdaq: TSLA) as the calendar rolled into 2024.Two of her investment vehicles, ARK Next Generation Internet ETF and ARK Innovation ETF bought more than 105,000 EV manufacturer’s shares on January 3, according to data released on cathiesark.com.Like Coinbase, Tesla also witnessed triple-digit gains in 2023. The industry leader capitalized on easing macroeconomic conditions and the rejuvenated tech sector, ending the year with a 101% gain. The latter part of 2023 was much more challenging for the EV giant as its operating margins suffered a stark decline. This and overvaluation concerns prompted some Wall Street firms to trim their expectations.But despite deteriorating consensus expectations, Wood believes the carmaker is poised to increase its market share as peers like Ford Motor and GM cool off on their EV plans due to profitability concerns. In their year-end letter to subscribers, ARK’s analysis of Tesla projected a price estimate of $2,000 per share by 2027. The firm outlined bull and bear scenarios, projecting $2,500 per share and $1,400 per share, respectively.More By This Author:Foxconn, TMSC Shares Dip as Apple Finds Itself in a Tough SpotThree Stocks To Diversify Beyond The Magnificent Seven In 2024 Brent Up As Oil Prices Rise After Tensions Heat Up In The Red Sea
